#USA #Maumee #Cost Reduction #EBITDA Growth #Dana

Dana Incorporated Reports Financial Results for 2024

Dana Incorporated, a leader in advanced propulsion and energy-management solutions, has announced its financial results for the full year 2024. The company reported a slight decline in total sales, standing at $10.3 billion, which marks a decrease of $271 million compared to the previous year. Despite this drop, Dana managed to grow its adjusted EBITDA by $40 million to reach a total of $885 million. The adjusted EBITDA margin also improved by 60 basis points, indicating effective cost-control measures amid challenging market conditions.

Financial Highlights

For the full year 2024, Dana faced a net loss of $57 million, a significant shift from the net income of $38 million reported in 2023. However, the company's adjusted net income rose to $136 million from the prior year's $122 million. The increase in adjusted EBITDA reflects Dana's efforts to streamline its operations and reduce costs. Notably, the company achieved a free cash flow of $70 million, which represents an increase of $95 million compared to 2023.

In a statement, R. Bruce McDonald, Dana's chairman and CEO, expressed confidence in the company's ongoing strategies to enhance profitability and shareholder value. McDonald highlighted that Dana has already realized over $100 million in run-rate savings and aims to reach an annualized target of $300 million by 2026.

During the fourth quarter of 2024, Dana saw its sales reach $2.3 billion, down from $2.5 billion in the same quarter of the previous year. This decline can be attributed to a decrease in the demand for electric vehicles and specific categories of off-highway equipment, as well as stagnation in vehicle production caused by higher inventory levels among certain truck programs.

The fourth quarter results showed an adjusted EBITDA of $186 million, an increase from $156 million in the previous year, driven by operational efficiencies and cost-reduction actions. However, the company had a net loss of $80 million for the quarter, worsened by higher restructuring costs aimed at achieving the necessary savings.

2025 Outlook and Initiatives

Dana's management has affirmed its financial guidance for 2025, projecting sales between $9.525 billion and $10.025 billion. The company also expects an adjusted EBITDA of $925 million to $1,025 million, which would imply an approximate EBITDA margin of 10% at the midpoint. Other financial targets for 2025 include an operating cash flow of around $500 to $600 million, a free cash flow projection of $175 to $275 million, and diluted adjusted earnings per share (EPS) in the range of $1.40 to $1.90.

As Dana navigates these financial challenges, it remains focused on enhancing its competitive position through various strategies. The reduction of capital expenditures and improvement in working capital efficiency will be key drivers to increase free cash flow in the upcoming fiscal year. In summary, Dana Incorporated is proactively managing its resources to address market fluctuations while laying a groundwork for sustainable growth and profitability.

The company plans to hold a conference call to discuss these results in detail on February 20, 2025, providing investors and stakeholders with further insights into its operational strategies and financial health. Interested parties can participate in the call or access an online stream via Dana's investor website.